Major Myanmar's real estate project wins lease extensions

Yoma Strategic Holdings

13/07/2016 12:57

By Timothy Mclaughlin 
    YANGON, July 13 (Reuters) - A half billion dollar real 
estate development in Myanmar's commercial capital has gained 
critical lease extensions from the ministry of transport, its 
developer said on Wednesday. 
    The Landmark Development, backed by Singapore-listed Yoma 
Strategic Holdings Ltd.  YOMA.SI , located in Yangon, has been 
stalled since 2012 without them. 
    The centerpiece of the 10 acre mixed-use property is the 
139-year old Burma Railway Headquarters, a red-brick colonial 
building that will be transformed into a luxury hotel.  
    "The lease extension for Landmark site has been granted by 
Myanmar Railways of the Ministry of Transport and Communications 
for an initial period of 50 years commencing on 1st January 
1998," a spokeswoman for Yoma said.  
    "We are working with the relevant stakeholders including MIC 
(Myanmar Investment Commission) to proceed with the project." 
    Officials from the Ministry of Transport and Communications 
could not be immediately reached for comment.  
    The lease extensions are a step forward in the development 
of what is one of Myanmar's most high-profile international 
investments.  
    Japan's Mitsubishi Corporation  8058.T  and Mitsubishi 
Estate Co., Ltd  8802.T  have formalized their involvement in 
the project, Yoma said in a statement on Tuesday.   
    First Myanmar Investment Company Limited  00001.YG , a 
Myanmar-based affiliate of Yoma, and the International Finance 
Corporation, a branch of the World Bank that finances private 
ventures, also entered into the shareholders' agreement on 
Tuesday. 
    Both Yoma and FMI are lead by prominent Myanmar businessman 
Serge Pun, who first unveiled the Landmark development in 2012.  
    Pun told Reuters in March that it was his adherence to good 
business practices that had kept the project from moving forward 
on schedule.  
    "It has been a very long and arduous red tape road," he 
said. "Good governance always has a price to pay and the price 
we are paying is a delay." 
    A senior transport ministry official said at the time that 
the refurbishment of the old building was in progress but needed 
to be carried out "without affecting the heritage values." 
    The official did not comment on why the lease extension had 
been delayed.  
 
 (Editing by William Hardy) 
 ((Timothy.Mclaughlin@thomsonreuters.com;)) 
 
Keywords: MYANMAR REALESTATE/